Repercussions from Foot-and-Mouth Outbreak
A recently released report shows that foot-and-mouth disease has affected consumer spending on sports and sporting activities. The Sheffield Hallam University report suggests that sports gambling has been the hardest hit by the disease among all sporting related industries, with horseracing likely to lose £227 million as a direct result of the outbreak.
Chartwell 1st Quarter up 134 Percent Over Same Period Last
Year
Chartwell Technology Inc. (CWH.V), when announcing fiscal results for the three months ending January 31, 2001, reported revenues of $442,538. This represents an increase of 134 percent over the same period last year. The company's Gaming Tech subsidiary generated most of these revenues through software licensing and development fees. In addition, Chartwell reported $1,039,007 in expenses, a 93 percent increase over the prior year. The majority of these expenses relate to research and development and sales and marketing. The company also posted a loss of $596,496 during this timeframe, compared with a loss of $349,607 during the same time last year. The company attributes a significant part of the loss to investment in software development.
2000 Results Issued by On-Point Technology Systems
Officials at On-Point Technology Systems, Inc. (ONPTD) announced upon releasing its 2000 year-end results that the company is going to transition operations into new market directions. Chairman and CEO Frederick Sandvick also announced that a settlement had been reached with the shareholder class action suits filed last year. Last year On-Point had revenues of $10,293,000, down from 1999's $13,482,000. Net losses were $2,824,000, whereas the company reported $721,000 in losses the previous year. The losses were broken down as follows: a $1 million charge to earning for the accrual of the settlement of the share holder class actions filed in 2000; research and development charges increased 47 percent over the previous year; $400,000 in on-cash charges related to non-performing equipment previously held under a lease to a
former customer; $500,000 in greater legal costs and other reserves and expenses; and $400,000 in income following the termination of a merger agreement with GTECH Corporation (GTK).
" We have set forth on a series of planned actions intended to transform the company; and, to strategically place its business interests into larger, more diversified markets," commented Sandvick. Among those actions, he said, "the company previously entered into a strategic relationship with
Victor Chandler International Limited (VCI).in order to jointly promote each others expertise while pursuing potential international projects. We are pursuing discussions with VCI for the acquisition of rights
to develop certain on-line lotteries and we are currently in preliminary negotiations for at least one such opportunity in a foreign country. We believe VCI, which was part of a private equity offering for the company in October 2000, can assist our development of our on-line technology designs."
Crypto Buys More Shares
An issuer bid to purchase up to 1 million shares of its common shares ended on April 9, after which Cryptologic Inc. (CRYP) confirmed that it will pay for about 978,000 shares tendered to the bid for C$19 each. "Although we offered to buy back shares at a 15 percent premium," said Jean Noelting, the company president and CEO, "the under-subscription sends a strong vote of confidence in Cryptologic." The company will pay an aggregate purchase price of about $18.6 million. As a result of the under-subscription,
shareholders that have tendered their common shares will have all of their shares purchased without pro-rationing and there will be no post-offer odd lot purchases. These shares equal about 7 percent of Cryptologic's outstanding shares.
Online Betting Becomes BSkyB Staple
Online betting has become an important staple for British satellite broadcaster BSkyB, reports The Times. Chairman Rupert Murdoch estimates that by 2005, online gambling revenues could top £700 million for the
company, which could be achieved through various distribution channels. "Analysts expect online betting to become a staple in nearly 8 million U.K. homes in the next four years, creating a £10 billion market," he said. News International, which is a subsidiary of News Corp, owns 37.8 percent of the U.K. company.
Will Hill Reports Increased Revenues
British bookmaking firm William Hill has announced its results for the financial year ending December 26, 2000. Among the highlights, the company reported an 8.8 percent increase in revenue to £2.042 billion. In addition, profits before interest and taxation increased to £87 million, the company said. William Hill's online sportsbook operation also proved successful, recording an 8.2 percent gross win percentage, although it incurred some startup losses during the year.
For more details, click here to view William Hill's 2000 results.
Savvy Stock Stuff
Investors Corner takes a quick gander at some interactive gaming companies' stock prices today.
- Stanley Leisure (SLY) closed at 239.50 pence on April 12. The company has seen its share price take an upward swing since late November, when the price bottomed out at 150 pence.
- Sportingbet.com (SBT.L) is seeing some low stock prices after nearly reaching the 150 pence mark in early February. By March, stock prices dropped below 110 pence for the first time since the company's IPO on the London Exchange in January. Prices closed at 100.50 on Thursday.
- Shares for IQ-Lodurum (IQL.L) flirted with the 80 pence mark for several weeks before its price began falling in mid-October. On Thursday shares were down to 15.50 pence.
- Despite the announcement that Magna Entertainment (MIEa.TO) was closing on its acquisition of Ladbroke Racing Pennsylvania, shares in the company took a slight downturn to close at $6.70. The company's 52-week range is $4.05 to $11.65.
- Irish bookmaker Paddy Power, which trades under the name Power Leisure (PWL.L), saw its share price value increase 2.50 pence to close at 200 pence on Thursday. Click here to view the company's 2000 annual report.